Invest in quality companies that make profits, advises stock market expert and rediffGURU Samraat Jadhav.
rediffGURU Samraat Jadhav is the founder of Prosperity Wealth Adviser.
A SEBI-registered investment and research analyst, he has over 18 years of experience in managing high-end portfolios.
You can ask rediffGURU Samraat Jadhav your questions HERE.
Alluvada: I have 10,000 Tata Steel shares, can i hold or sell?
It’s among the top Indian exporters among listed companies.
Effectively using its capital to generate profit -- RoCE improving in last two years.
Effectively using shareholders’s fund -- return on equity (ROE) improving since last two years.
Efficient in managing assets to generate profits --- ROA improving since last two years.
Company is reducing debt.
Strong cash generating ability from core business -- improving cash flow from operation for last two years.
Annual net profits improving for last two years.
All the above data suggest to hold.
Sandesh: Hi Sir, Good Morning, I have following stocks 1. Hathway Cable : 535 @ 19.18 Rs 2. IFCI Ltd : 450 @ 15.43 Rs 3. JMT Auto : 594 @ 4.73 Rs 4 Opto Circuits : 1300 @ 5.74 Rs what can I do now -- Hold/Exit, I can wait for 3 to 5 Yr
Even after 3-5 years, their financials will not improve. Huge challenges ahead.
Hathway -- Annual net profit declining for last two years.
IFCI -- Book value per share deteriorating for last two years.
JMT Auto -- Delisted.
Opto Circuits -- Delisted.
Exit and always invest in quality companies who make profits. Let not your hard-earned money be taken away by such companies.
Bhagirathi: I have 100 shares of Crompton Greaves at 538. What should I do now?
It’s an inefficient use of assets to generate profits.
ROA is declining over the last two years.
Decline in net profit with falling profit margin (QoQ).
Decline in quarterly net profit with falling profit margin (YoY).
Declining revenue every quarter for the past two quarters.
Declining net cash flow: Company’s not able to generate net cash.
The problem is clear -- the only trigger is the EV segment but is now facing tough competition from M&M.
Dimple: Can I buy Karnataka Bank at 129 Rs...if yes then what target to expect in short term?
Ans: Increasing Revenue every quarter for the past four quarters.
Annual net profits improving for last two years.
Book value per share improving for last two years.
FII/FPI or institutions increasing their shareholding.
All data suggest good and the short-term target for one year can be considered as Rs 190.
Surendra: Should buy biocon or sale?
Serum Institute Life Sciences will now double its investment in Biocon Biologics from $150 million that was announced earlier in 2021 to $300 million.
This is good news to hold the stock.
Jayesh: What is your view on 3iinfotech , is it a good stock..???
High PE with Negative ROE.
Decline in net profit with falling profit margin (QoQ).
Company with weak financials.
Declining net cash flow: Company’s not able to generate net cash.
This data suggests it is not a good stock.
Mukesh: Please advice Adani Power & pantjali Foods
Adani Power data is good, but Patanjali has some serious management issues. Would suggest to stay away from Patanjali.
Sunil: Should I buy EKI Energy at current price?
Decline in net profit with falling profit margin (QoQ).
Decline in quarterly net profit with falling profit margin (YoY).
Declining revenue every quarter for the past two quarters.
Declining profits every quarter for the past two quarters.
Declining net cash flow: Companies not able to generate net cash.
Fall in quarterly revenue and net profit (YoY).
Company not so good to add.
Ashish: Syngane international 35 share at 576 kindly advise
Growth in net profit with increasing profit margin (QoQ).
Company with low debt.
Increasing revenue every quarter for the past two quarters.
Increasing profits every quarter for the past two quarters.
Book value per share improving for last two years.
Company with zero promoter pledge.
FII/FPI or institutions increasing their shareholding.
Great data, only concern is the declining net cash flow. But can hold for a target of Rs 700 in coming two years.
Aswath: Should we hold or keep Ashok Leyland?
Growth in net profit with increasing profit margin (QoQ).
Increasing revenue every quarter for the past two quarters.
Increasing profits every quarter for the past two quarters.
Company with decreasing promoter pledge.
FII/FPI or institutions increasing their shareholding.
One negative part it has is its HIGH DEBT, which they should restructure in coming times. Hold it for a period of 3-5 years for a good upside.
Ask rediffGURU Samraat Jadhav your questions HERE.
Please mail your questions to getahead@rediff.co.in with the subject line 'Ask Ajit', along with your name, and Mr Ajit Mishra will offer his unbiased views.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
